Page:United States Statutes at Large Volume 119.djvu/1044

 119 STAT. 1026

PUBLIC LAW 109–58—AUG. 8, 2005

‘‘(e) BASIS ADJUSTMENT.—For purposes of this subtitle, if a credit is allowed under this section in connection with any expenditure for any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined. ‘‘(f) COORDINATION WITH INVESTMENT CREDIT.—For purposes of this section, expenditures taken into account under section 47 or 48(a) shall not be taken into account under this section. ‘‘(g) TERMINATION.—This section shall not apply to any qualified new energy efficient home acquired after December 31, 2007.’’. (b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.—Section 38(b) (relating to current year business credit), as amended by this Act, is amended by striking ‘‘plus’’ at the end of paragraph (21), by striking the period at the end of paragraph (22) and inserting ‘‘, plus’’, and by adding at the end the following new paragraph: ‘‘(23) the new energy efficient home credit determined under section 45L(a).’’. (c) BASIS ADJUSTMENT.—Subsection (a) of section 1016, as amended by this Act, is amended by striking ‘‘and’’ at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting ‘‘, and’’, and by adding at the end the following new paragraph: ‘‘(33) to the extent provided in section 45L(e), in the case of amounts with respect to which a credit has been allowed under section 45L.’’. (d) DEDUCTION FOR CERTAIN UNUSED BUSINESS CREDITS.—Section 196(c) (defining qualified business credits) is amended by striking ‘‘and’’ at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘‘, and’’, and by adding after paragraph (12) the following new paragraph: ‘‘(13) the new energy efficient home credit determined under section 45L(a).’’. (e) CLERICAL AMENDMENT.—The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following new item: ‘‘Sec. 45L. New energy efficient home credit.’’. 26 USC 38 note.

(f) EFFECTIVE DATE.—The amendments made by this section shall apply to qualified new energy efficient homes acquired after December 31, 2005, in taxable years ending after such date. SEC. 1333. CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY.

(a) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section: ‘‘SEC. 25C. NONBUSINESS ENERGY PROPERTY.

‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— ‘‘(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and ‘‘(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. ‘‘(b) LIMITATIONS.—

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